Foreign Funds Return to Indian Bonds as JPMorgan Inclusion Nears

  • Inflows totaled $358 million on Monday, most in two months
  • Index inclusion, lower short-term bill sales helping bonds
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Foreign investors are returning to rupee-denominated bonds as India’s inclusion in JPMorgan Chase & Co.’s emerging-market debt index approaches.

Overseas investors boughtBloomberg Terminal about $358 million of bonds on Monday, the most in two months and a seventh successive day of purchases, data compiled by Bloomberg show. That took net purchases for May to $709 million after $1.9 billion of sales in April amid a global risk-off that spurred outflows from emerging markets.